BUSINESS HIGHLIGHTS
FINLAND
Asphalt cartel ordered
to pay damages
Settlement reduced due to state involvement
F
innish contractor Lemminkäinen has been ordered to pay € 48 million
(US$ 65 million) in damages, interest and legal expenses by the District
Court of Helsinki to reimburse local authorities after being found
guilty of acting as part of an asphalt cartel.
Six other defendants have also been ordered to pay damages – VLTTrading,
NCC Roads, Skanska Asfaltti, SA-Capital, Rudus Asfaltti and Super Asfaltti
– up to the low single digit millions.
Lemminkäinen’s penalty was the largest, split into damages of € 26 million
(US$ 35 million) and interest and legal expenses of some € 22 million (US$
30 million).
The company expects to make a loss in 2013 as a result. However, the
damages of € 123 million (US$ 167 million) that were originally sought from
Lemminkäinen were lowered after claims by the Finnish Transport Agency
were rejected by the court.
The government had sought damages of € 56.7 million (US$ 76.8 million),
but the claim was dismissed due to evidence that it benefitted from the
cartel. Claims from three other municipalities were also rejected. The Finnish
Transport Agency declined to comment.
NETHERLANDS
European opening
Kobelco Construction Machinery
Europe (KCME) has opened a new
European headquarters in Almere,
the Netherlands. The new office is
part of the company’s strategy to
sell excavators under its own brand
in Europe following the termination
a year ago of its decade-long joint
venture with CNH. The 5,300 m
2
facility will serve as Kobelco’s sales
and marketing centre, technical
support, and spare parts distribution
centre for Europe, the Middle-East,
Africa and the CIS.
CANADA
Lavalin loss
Canadian contractor SNC-Lavalin
has reported a third quarter loss
of CA 72.7 million (US$ 70
million), compared to net profit of
CA$ 114 million (US$ 109 million)
for the same three months in 2012.
Revenues were stable year-on-year at
CA$ 1.9 billion (US$ 1.8 billion).
The company put the sharp fall in
profits down to an operating loss in
its infrastructure and environment
division.
TURKEY
Grader buy
Hidromek has acquired Mitsubishi
Heavy Industries’ (MHI) grader
business, togetherwith its production
facilities in Thailand. Hidromek,
which manufactures backhoe loaders
and excavators, said the deal would
enable it to further penetrate Asian
markets. Hidromek said it would
continue operations at MHI’s
production facility in Thailand,
MHI-Pornchai Machinery, keeping
existing employees.
GERMANY
Cement gain
Heidelberg Cement reported third
quarter profit before tax of € 721
million (US$ 982 million), up
+70% year-on-year, while revenues
were steady at € 3.9 billion (US$ 5.3
billion). A recovery in demand from
mature markets, and growth in Asia
and Africa, fuelled the result.
VALUE OF 1:
SYMBOL AU$
BRL
UK£ CNY
€
INR
YEN MXN RUR SAR
ZAR KRW CHF
US$
Australian Dollar
AU$
0.47 0.594 5.85 0.697 59.0
94
12.50 30.5
3.61
9.40
1022 0.859 0.962
Brazilian Real
BRL
2.12
0.281 2.76 0.330 27.9
44.3
5.91
14.4
1.70
4.45
483 0.406 0.455
British Pound
UK£
1.68
3.56
9.8
1.17
99.4
158
21.0
51.3
6.07
15.8
1719 1.44
1.62
Chinese Yuan
CNY
0.171 0.362 0.102
0.119 10.10 16.0
2.14
5.21 0.617 1.609
175 0.147 0.164
Euro
€
1.43
3.03
0.85
8.39
84.7
134
17.9
43.7
5.17 13.49 1466 1.23
1.38
Indian Rupee
INR
0.017 0.036 0.010 0.099 0.012
1.6
0.212 0.516 0.0611 0.159 17.3 0.0145 0.0163
Japanese Yen
YEN
0.011 0.023 0.006 0.062 0.007 0.630
0.1335 0.325 0.0385 0.1004 10.9 0.0092 0.0103
Mexican Peso
MXN
0.080 0.169 0.048 0.468 0.056 4.72
7.49
2.44 0.288 0.752
82
0.069 0.0769
Russian Ruble
RUR
0.033 0.069 0.019 0.192 0.023 1.94
3.07 0.410
0.118 0.309 33.5 0.0282 0.0315
Saudi Riyal
SAR
0.277 0.587 0.165 1.621 0.193 16.373 25.973 3.467 8.453
2.61
283 0.238 0.267
South African Rand ZAR
0.106 0.225 0.063 0.622 0.074 6.278 9.959 1.329 3.241 0.383
109 0.091 0.102
South Korean Won KRW
0.0010 0.0021 0.0006 0.0057 0.0007 0.0578 0.0917 0.0122 0.0298 0.0035 0.0092
0.00084 0.0009
Swiss Franc
CHF
1.16
2.46
0.69
6.81
0.81 68.76 109.07 14.56 35.50 4.20 10.95 1190
1.120
US Dollar
US$
1.04
2.2
0.618 6.08 0.725 61.4
97.4
13
31.7
3.75
9.78 1062.5 0.893
For example US$ 1 = AU$ 1.04
Exchange rates: November 2013
US
House builder Toll Brothers has
agreed to purchase the residential
construction business of Shapell
Industries for US$ 1.6 billion in cash.
Shapell is one of California’s largest
land development and residential
construction companies. Among the
assets Toll Brothers will gain are
5,200 plots, which will take its total
Californian land bank to 9,200 lots.
OMAN
Strabag Oman has won a
contract from Oman’s Ministry of
Transport and Communication to
build a 100 km section (lot 2) of the
400 km long road between the city
of Sinaw and the industrial zone in
Duqm. The scheme, in the south of
the country, is worth
€
88 million
(US$ 120 million). Construction will
start in January 2014 and is expected
to last 24 months.
US
Contractor Fluor saw profits rise
+12% to US$ 331 million for the third
quarter. However, revenues dropped
-6% to US$ 6.7 billion from US$ 7.1
billion in 2012, due to decreases
at its industrial, infrastructure and
government divisions.
POLAND
Chinese manufacturer
Liugong has expanded in Poland
with the acquisition of bankrupt
components producer ZZN
Transmission Plant. Located in
Stalowa Wola, adjacent to Liugong
Poland’s existing factory, ZZN is
already a supplier of axles and
gearboxes to the company, which
makes Dressta-branded machines.
international
construction
december 2013
BUSINESS NEWS
10
GERMANY
Aker to sell TBM technology to CRTE
Norwegian
engineering
and
construction group Aker Solutions
is to sell intellectual property rights
owned by subsidiary Aker Wirth
to China Railway Tunnelling
Equipment (CRTE), a tunnelling
equipment maker.
The technology being sold covers
Aker Wirth’s tunnel boring and
shaft-boring equipment for the
construction and mining industries.
As part of the deal, privately-owned
CRTE will get the right to use the
Wirth brand on products based
on the technology it is acquiring.
The transaction will not see any
employees transferred to CRTE.
Aker Solutions will also retain
Aker Wirth’s factory in Erkelenz,
Germany.
